Equilibrium price must decrease when demand
a. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously.
b. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.
c. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously.
d. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously.
Answer: a. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously.
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A. current; current B. base; current C. base; index D. current; base
When the federal government orders firms to use particular methods to reduce pollution, it is said to be using
A) market-based policies. B) global initiatives. C) strong-arm tactics. D) command-and-control policies.
Johnny owns a house that would cost $100,000 to replace should it ever be destroyed by fire. There is a 0.1% chance that the house could be destroyed during the course of a year. Johnny's utility function is U = W0.5
How much would fair insurance cost that completely replaces the house if destroyed by fire? Assuming that Johnny has no other wealth, how much would Johnny be willing to pay for such an insurance policy? Why the difference?
You are an analyst with a pee firm that makes DRAM memory chips. You must manufacture the chips before you know what the demand will be. Based on the below figure, if the demand is high with an 40% probability and low with a rfectly competitiv60% probability, the expected marginal revenue for a chip is
A) $1.00.
B) $2.00.
C) $1.80.
D) None of the above answers is correct.